High Court Allows GST Revocation on Payment of All Outstanding Dues and Filing of Returns

The Bombay High Court directed the concerned authorities of the Revenue to revoke the taxpayer’s GST registration if he/she makes payment of all outstanding GST dues, interest, penalties, and late fees and files pending returns within the prescribed timeline, as per the referenced Coordinate Bench ruling in the case titled Kishor Nichani Vs. The Union of India and Ors.

The petitioner, Treasure Realtors Private Limited, holds a principal place of business within the jurisdiction of Mumbai in the State of Maharashtra. The tax authorities had cancelled the petitioner’s GST registration number, with effect from March 01, 2019, through an order dated November 25, 2019, on the grounds of non-filing of the GST returns for six continuous months.

The petitioner, being aggrieved by the GST cancellation order, challenged the same before the Appellate Authority. However, the appeal was rejected through an order dated August 14, 2023, merely on the ground that the petitioner had delayed in filing the appeal (mentioned in the order).

Thereafter, the petitioner filed a writ petition before the Bombay High Court, challenging orders dated November 25, 2019, and August 14, 2023. During the personal hearing, the petitioner claimed that during the period under consideration, it was going through financial crises, and due to these financial crises, its staff members had also left the company. Thereafter, the pandemic of COVID-19 hit the country, because of which it could not further furnish the GST returns.

Accordingly, the petitioner requests the court to consider its writ petition. The petitioner further claims that it is willing to pay the outstanding GST due and payable along with late fees, interest and penalties. The petitioner cited an earlier Coordinate Bench decision delivered in Kishor Nichani Vs. The Union of India and Ors, where the court had directed the tax authorities to restore the petitioner’s GST registration if it pays all its outstanding GST dues, penalty and interest and also furnishes all pending GST returns.

When the court analysed the entire case, it noted that the facts and issues in the reference case (Kishor Nichani Vs The Union of India and Ors) are similar to the present case. Hence, the court decided to apply the same ruling in the present case of Treasure Realtors Private Limited.

The court holds that within 30 days of passing the present judgement (June 08, 2026), the concerned tax authorities must determine the total outstanding GST dues pertaining to the assessee and inform the petitioner of the same. The petitioner must thereafter make payment of all the outstanding dues belonging to it (as mentioned in the intimation) within the next 30 days. If the petitioner fulfils all the aforementioned conditions within the prescribed time limit, then the tax authorities have been directed to restore the petitioner’s GST registration.